作者：金茂律师事务所 黄朝为 律师 刘佳颖 律师 张弈 律师 WISSAL MAHFOUDI 外籍顾问
In today’s rapidly evolving global marketplace, Chinese electric vehicle (EV) manufacturers face growing challenges, e.g. the U.S. Notice of Proposed Rulemaking (NPRM) released on September 23rd, 2024 which aims to limit foreign access to U.S. markets, Chinese EV companies shall seek for more investment directions. Against this backdrop, Morocco emerges as an ideal investment destination, offering a strategic location, cost advantages, and a commitment to sustainable automotive manufacturing that aligns with the future of EV production.
1. Strategic Location and Access to Key Markets
Morocco’s unique location and trade agreements with Europe, the United States, and African nations provide critical advantages for Chinese EV companies looking to expand globally:
Europe: Morocco’s Association Agreement (AA) with the European Union allows for tariff-free access to the European market, where demand for electric vehicles is rapidly increasing due to environmental regulations. This agreement allows Chinese companies producing in Morocco to bypass restrictions on Chinese-made products while tapping into a high-demand region.
United States: The U.S.-Morocco Free Trade Agreement (FTA), in place since 2006, offers Moroccan-made products reduced tariffs or tariff-free entry to the U.S. market. For Chinese EV manufacturers, producing in Morocco opens up indirectaccess to the U.S. market while avoiding U.S. regulations directly targeting Chinese-origin goods.
Africa: As a member of the African Continental Free Trade Area (AfCFTA), Morocco enjoys duty-free access to over 50 African countries, a critical benefit as Africa’s automotive market grows rapidly. Manufacturing in Morocco offers Chinese EV companies a central hub for producing and distributing vehicles across this high-potential, developing market.
Together, these agreements position Morocco as an optimal base for Chinese EV firms seeking to expand their reach across the EU, U.S., and African markets.
2. Competitive Manufacturing Environment and Government Incentives
Morocco’s cost-competitive environment, combined with significant government support, makes it attractive for international manufacturers. Labor costs in Morocco are considerably lower than in Europe or the United States, yet the workforce is skilled, capable, and increasingly specialized in automotive technology.
The Moroccan government further supports foreign investment by offering tax breaks, subsidies, and training incentives to companies establishing operations in the country. Such initiatives help reduce operating costs for Chinese EV manufacturers, making it easier for them to achieve a profitable and sustainable production setup in Morocco.
3. Rich Natural Resources for Battery Production
Morocco is exceptionally well-positioned in the global battery market, thanks to its wealth of critical minerals and resources:
Phosphate: Morocco is the world’s second-largest phosphate producer, with vast reserves essential for lithium battery cathodes. Thisresource gives Morocco a competitive edge in the battery supply chain, making it attractive for companies producing EV components.
Cobalt: As Africa’s third-largest cobalt producer, Morocco supplies another vital material for battery production. While smaller than theDemocratic Republic of Congo’s supply, Morocco’s stable environment and cobalt resources provide an attractive and reliable source for EV manufacturers.
Manganese: An essential mineral in certain battery chemistries, particularly lithium-manganese oxide (LMO) batteries, Morocco has manganese deposits that contribute to its appeal for battery manufacturers looking for diversified mineral sources.
Copper: With deposits of copper, a critical component for battery connections and EV wiring, Morocco can support battery andautomotive production needs. Copper’s high conductivity makes it invaluable in the construction of electric vehicle motors and battery packs.
Rachid Yazami, the Moroccan inventor of the graphite anode widely used in today’s batteries, highlights Morocco’s unique advantages in the EV battery supply chain. With Morocco’s substantial reserves of phosphate and cobalt, combined with expertise in rapid charging technology, Yazami sees Morocco as a future global player in EV battery production.
4. Major Chinese Companies Investing in Morocco
Several leading Chinese companies have already committed to Morocco, illustrating the country’s potential as a future EV and battery production hub:
CALB (China Aviation Lithium Battery), a leader in battery manufacturing, has solidified a significant partnership with Morocco. To support further cooperation, the Moroccan Minister of Industry recently visited CALB’s China facility, underscoring Morocco’scommitment to expanding its role in EV battery production.
BTR New Material Group, a key supplier of battery materials, has initiated a $3 billion agreement with Morocco. This deal is set to strengthen Morocco’s place in the EV supply chain as BTR brings essential materials for lithium-ion batteries, directly benefiting local and global EV manufacturing.
Gotion High-tech, another notable Chinese battery company, has collaborated with Morocco on projects related to EV battery production and energy storage. Gotion’s focus on high-performance battery technology aligns with Morocco’s clean energy and sustainable manufacturing initiatives.
Haite Group, a prominent Chinese company in the aviation and aerospace sector, recently invested in Mohammed VI Tangier Tech City, Morocco’s innovation and industrial zone. This large-scale investment exemplifies Morocco’s appeal across sectors beyond automotive and positions Tangier as a hub for advanced technology and manufacturing. Such high-profile investments signal to other Chinese companies the breadth of opportunities Morocco offers for strategic growth and diversification.
These partnerships highlight the confidence Chinese firms have in Morocco’s potential and the Moroccan government’s proactive support for becoming a central player in EV production and other advanced industries.
5. Morocco’s Competitive Edge in Africa
Morocco’s stable political environment, modern infrastructure, and clear regulatory framework provide a distinct advantage over other African countries. Ranked as one of the top business-friendly environments in Africa, Morocco is ideal for establishing an African hub, offering both safety and ease of operation. This strategic advantage enables Chinese companies to expand with confidence, knowing they are operating in one of the continent’s most stable and cooperative economies.
6. Growing Market Demand in Africa and Europe
Demand for electric vehicles is rapidly increasing across Africa and Europe, driven by urbanization, rising income levels, and a shift toward sustainable transportation. Morocco is positioned to serve these burgeoning markets with EVs and battery components, making it a highly scalable and sustainable base for production. With Morocco’s trade agreements, Chinese companies can reliably meet this demand across both continents.
7. Morocco’s Future Projections and Infrastructure Goals
Morocco has ambitious plans to further develop its EV and battery sectors, with several initiatives underway to expand production capacity and infrastructure. The Moroccan government is actively exploring new partnerships with Chinese firms to enhance its green energy infrastructure, manufacturing facilities, and logistics network. These future goals highlight Morocco’s commitment to creating a fully integrated ecosystem, where Chinese firms can thrive with local government support and industry partnerships.
8. Types of Chinese Enterprises Likely to Invest in Morocco
Morocco’s strategic resources, infrastructure, and government incentives make it attractive for a range of Chinese companies in the EV and battery sectors:
Battery Manufacturers: Companies like CALBand CATL are likely to further invest in Morocco, as the country’s phosphates and cobalt resources offer an ideal base for lithium-ion battery production.
EV Component Suppliers: Chinese firms specializing in electric motors, control systems, and charging technologieswill benefit from Morocco’s competitive production environment and its connections to European and African supply chains. Setting up a base in Morocco allows these suppliers to meet the increasing demand for EV parts while avoiding the costs of tariffs and logistics associated with direct imports.
Automotive Manufacturing and Assembly Companies: With its established automotive infrastructure, Morocco is ideal for automotive assembly and manufacturing firms that wish to establish or expand EV production. Companies in this sector can leverage Morocco’s cost-effective environment and skilled labor force to streamline operations and optimize supply chains.
9. Morocco’s Role in the African Market
Morocco’s trade advantages, stable infrastructure, and geographic location uniquely position it as a gateway to Africa’s growing EV market. As incomes rise and urbanization continues across Africa, demand for affordable, eco-friendly transportation is expected to grow significantly.
The Moroccan government has made substantial investments in modernizing infrastructure, including ports, highways, and railways that facilitate efficient trade across the continent. Chinese EV manufacturers operating in Morocco can easily distribute products throughout Africa, benefiting from the AfCFTA and Morocco’s established role as a trading hub in North Africa.
Conclusion: A Strategic Opportunity for Growth
As global trade landscapes shift and new regulations impact market access, Chinese EV manufacturers must consider alternatives that secure long-term growth. Morocco presents a compelling case as a cost-effective, strategically located, and sustainability-focused destination for investment.
By establishing operations in Morocco, Chinese EV companies gain access to the European, African, and U.S. markets—leveraging the Association Agreement (AA) with the EU, the AfCFTA, and the U.S.-Morocco Free Trade Agreement (FTA). These partnerships allowChinese-manufactured products from Morocco to reach key markets without facing the restrictions applied to Chinese-made goods. With companies like Geely,BYD, CALB, BTR New Material Group, Gotion High-tech, and Haite Group leading the way, Morocco is emerging as a crucial player in the future of global electric mobility and diversified Chinese investment.
For Chinese EV manufacturers ready to expand, Morocco offers a timely and strategic pathway to growth in a rapidly evolving global market.